Tax topic: What you need to know about Tax | Tax

From Longman Dictionary of Contemporary Englishtaxtax1 /tæks/ ●●● S1 W1 noun    [countable, uncountable]PET an amount of money that you must pay to the government according to your income, property, goods etc and that is used to pay for public servicestax on  a tax on fuel  He already pays 40% tax on his income.before/after tax  profits before tax of £85.9m → capital gains tax, → corporation tax(1), council tax, income tax, sales tax, stealth tax, VAT, PAYECOLLOCATIONSverbspay taxMany people feel they are paying too much tax.raise/increase taxes (also put up taxes British English)He claimed the Labour Party would put up taxes.lower/cut/reduce taxesThere’s no point promising to cut taxes if you can’t afford it.ADJECTIVES/NOUN + taxhighHigher taxes will slow down consumer spending.lowRepublican voters say they want lower taxes and sensible spending cuts.income tax (=tax paid on money that you earn)The rich should pay more income tax.sales tax (=a tax on things you buy)We have to pay 15% sales tax on everything we buy.inheritance tax (=tax paid on money, property etc that you receive from someone when they die)Inheritance tax applies to the total value of the deceased’s assets.a direct tax (=a tax on income)The government’s revenue comes mainly from direct taxes.an indirect tax (=a tax on things you buy)The effect of indirect taxes is to raise the prices of goods.a flat (rate) tax (=a tax that is the same for different people or things)Corporate taxes are to be abolished and replaced by a flat rate tax.tax + NOUNthe tax rate/the rate of taxThe government reduced the basic rate of tax to 25p in the pound.tax cutsHe believes that big tax cuts will encourage economic growth.tax increasesHe accused the president of planning the biggest tax increases in US history. tax incentives (=lower taxes that encourage people to do something)We have introduced new tax incentives for savings.a tax allowance (=an amount you can earn without paying tax on it)Cutting personal tax allowances penalizes the poor. the tax burden (=the amount of tax paid)The total tax burden has risen only slightly. THESAURUStax money that you must pay to the government, especially from the money you earn, or as an additional payment when you buy somethingHow much income tax do you pay each month?The Republicans promised to reduce taxes before the last election.Consumers are angry that the tax on petrol has gone up yet again.duty a tax you pay on something you buyThe budget also sharply raised the duty on alcohol and tobacco.customs duty (=tax you pay on goods you buy and bring into the country)tariff a tax on goods coming into a country or going out of a country, especially to protect a country’s industry from cheap goods from other countriesthe import tariffs on hi-tech equipmentThe government’s tariff and trade policies came under fierce attack.levy an extra amount of money that you have to pay the government, usually as a tax, often in order to encourage people not to use or do somethingA new levy on fuel inefficient vehicles has been proposed.surcharge an amount of money that you have to pay in addition to the agreed or stated price of somethingBritish Airways will increase its fuel surcharge on all airline tickets from June 3. When you get cash at some machines, you have to pay an ATM surcharge.Examples from the Corpustax• I made over $600 a week, which was around $450 after tax.• He pleaded guilty to charges of fraud and tax evasion.• Clinton is already banking on the savings to make possible a $ 98 billion tax cut over five years.• proposals for an increase in taxes to pay for medical care• Employers' social security contributions were reduced by 4.3 percent from Jan. 1,1993, and income tax allowances were reduced.• The Chancellor said he would cut income tax by 2 pence in the pound.• He failed to report and pay income tax on a portion of his income.• Big business has further reduced its contributions by ingenious tax avoidance strategies.• He will advise you on the inheritance tax your estate might incur and ways in which this may be reduced.• How could the federal government make up the revenue drain that would result to avoid raising other taxes or increasing the deficit?• The city will have to raise taxes to pay for the roads.• The Republicans promised to reduce taxes before the last election.• Weber said tax reform could have been a good issue for the Republicans this year.• Sales tax in the state is 8%.• Although the tax on cigarettes has doubled in the past two years, sales are still going up.• Consumers are angry that the tax on petrol has gone up yet again.• The package will also cut the securities trading tax to 0. 21 percent from 0. 30 percent.before/after tax• Profits edged up £59,000 to £2.12m before tax.• McClellan was paid a $ 250,000 purse but netted only $ 62,920. 75 before taxes.• Wimpey's loss before tax compared with a deficit of £16.1 million in 1991.• The cost of debt is 5. 3 percent after tax.• Prudential Corporation reported that first half profit before tax rose by 46% to £249m.• Smiths Industries reported that profit before tax fell by 7% to £102.2m in the year to 1 August.• Profit before tax at Bass rose by 16.5% to £501m in the year to 30 September 1992.